Scandinavian Working Papers in Economics

Memorandum,
Oslo University, Department of Economics

Strategic Location with Asymmetric Transportation Costs.

T. Nilssen and L. Sorgard

Abstract: We extend the classical Hotelling location game with exogenously fixed prices to the case where consumers' transportation costs are asymmetric, in the sence that it is more costly for consumer to move in one direction, say on the left (towards 0), than to move to the right (towards1).

Keywords: CONSUMPTION; PRICES; INDUSTRIAL LOCATION

JEL-codes: R32; L13; L82

23 pages, 1996

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